Bank of Japan (BoJ) officials, including Deputy Governor Shinichi Uchida and Governor Kazuo Ueda, have indicated that the central bank does not plan to raise its policy rate rapidly or continuously after the end of the negative interest rate policy. They assured that financial conditions will remain accommodative, and the transition away from negative rates will be smooth. Uchida emphasized that economic developments will guide the decision on whether the BoJ's balance sheet will expand or contract once stimulus is withdrawn. He also stated that the bank will not abruptly stop bond purchases and will carefully consider the most appropriate means and sequence for shifting policy. The IMF's First Deputy Managing Director Gopinath expressed confidence that the BoJ can end negative rates smoothly due to the market's perception of long-term low borrowing costs.
When and if the BOJ terminates its negative interest rate policy, how far will it go? A speech by Deputy Gov. Shinichi Uchida offers reassuring clues, but no concrete promises. https://t.co/KTWdSj7dWE
A top Thai monetary policymaker says the central bank is willing to lower borrowing costs if it is convinced that the weakness in the economy is persistent and not transitory https://t.co/8IEAsytEzT
π΄ IMF FIRST DEPUTY MANAGING DIRECTOR GOPINATH BELIEVES BOJ CAN SMOOTHLY END NEGATIVE RATES DUE TO THE MARKET PERCEPTION OF LONG-TERM LOW BORROWING COSTS.
And this AM, BOJ Governor Ueda is in front of parliament saying βEven if we end minus rates, the accommodative financial conditions will likely continueβ That's 3 BOJ Gov/DepGovs with that message in 2 days. https://t.co/kWzTDl0CnY https://t.co/2IhTVyi8Wu
Financial conditions in Japan will remain easy for the time being even after the Bank of Japan puts an end to the worldβs last negative rate regime, Governor Kazuo Ueda says https://t.co/OdjkNkRuC7
π΄ BOJ GOVERNOR UEDA TO CONSIDER HEALTH OF BALANCE SHEET WHEN EXITING STIMULUS POLICY
Bank of Japan Deputy Gov. Shinichi Uchida said Thursday itβs hard to see the bank raising its policy rate rapidly, even after the negative interest rate is ended. https://t.co/We3jgdgf6M
BoJ Deputy Governor Uchida: Won't Hike Rates Aggressively Upon Ending Negative Rates - MS https://t.co/olFYC1Czei
BoJ Exec: Accommodative Conditions To Stay Even If Negative Rates Are Abandoned - CNA https://t.co/AtB6lQ9Xly
π΄ BOJ UCHIDA: ANNUAL WAGE BARGAINS CRUCIAL IN DETERMINING POSITIVE ECONOMIC CYCLE
π΄ BOJ'S UCHIDA: WON'T ASSESS OR COMMENT ON MARKET PERCEPTIONS OF FUTURE RATE PATH
π΄ UCHIDA OF BOJ SAYS ECONOMIC DEVELOPMENTS WILL DETERMINE WHETHER BALANCE SHEET EXPANDS OR CONTRACTS WHEN STIMULUS IS WITHDRAWN
BoJβs Uchida: BoJ Will Not Abruptly Stop Bond Purchases
π΄ BOJ'S UCHIDA: TERMINATING YCC DOES NOT IMPLY A SUDDEN STOP IN BOND BUYING
π΄ BOJ'S UCHIDA TO DETERMINE CONDITIONS FOR SHIFTING POLICY, WILL CONSIDER MOST APPROPRIATE MEANS AND SEQUENCE
Accommodative policy to stay after negative rate ends: Bank of Japan deputy https://t.co/N6BuEfIMaf
A top Bank of Japan official said itβs hard to see the bank raising its policy rate continuously and rapidly even after the negative interest rate is ended https://t.co/eDup7KvBZm
*UCHIDA: HARD TO IMAGINE PATH OF CONTINUOUS RATE HIKES *UCHIDA: FINCL CONDITIONS TO BE EASY EVEN AFTER NEG. RATE ENDS